Where the EU stands vis-à-vis the USA and China? Corporate R&D intensity gap and structural change

Pietro Moncada Paterno' Castello () and Nicola Grassano
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Pietro Moncada Paterno' Castello: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en
Authors registered in the RePEc Author Service: Pietro Moncada-Paternò-Castello

No JRC129967, JRC Research Reports from Joint Research Centre

Abstract: This Brief explores the longstanding deficit in the EU’s overall corporate R&D intensity compared with that of competing economies over the last decade. The main results indicate the following: The EU business sector is still leading in traditional medium-tech sectors, such as automobiles and parts. As for the US and China, they are much stronger in newer high-tech sectors, and have maintained and even increased their strength in the last decade. For the EU, this causes a lower overall share of net sales and of R&D investment in sectors of high R&D intensity, compared with the full sample (all sectors). Consequently, there is a lower impact on the aggregate (all sectors) result for EU R&D intensity. The EU has a small number of global players in key sectors of high R&D intensity, such as biotechnology and ICT. The sample of top EU R&D investing companies is ahead in the production of green patents related to climate change technologies, as compared with the US and China. Tailored policies should also foster the speed of structural (sectoral) change towards sectors that are more R&D intensive, including some emerging ones, for example artificial intelligence and renewable energies. This will help the creation and growth of more firms in such sectors.

Keywords: EU vs China vs USA; Corporate R&D intensity gap; structural change (search for similar items in EconPapers)
Date: 2022-09
New Economics Papers: this item is included in nep-cna, nep-ict, nep-sbm and nep-tid
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